SRT Marine Systems (SRT) H1 2026 earnings summary

Executive summary

• Revenue grew 95% year-over-year to £51.1m for H1 FY2026, with profit before tax up 48% to £3.1m and strong operating cash flow of £35.3m, driven by robust contract execution and expanding global demand for maritime domain awareness solutions.

• Maintains a diverse global customer base, including five active sovereign customers and vessel operators, with a growing contract pipeline and validated opportunities totaling £1.8bn.

• Business model leverages proprietary technology, modular systems, and long-term sovereign partnerships, supporting recurring revenue streams.

• The first unmanned surface surveillance vessel program became fully operational, and the NEXUS VHF/AIS marine communications system launched and began shipping post-period.

Financial highlights

• H1 FY2026 revenue reached £51.1m, up 95% year-over-year; gross margin at 27% due to systems project mix; systems business margin was 26%, transceivers business 42%.

• Profit before tax (PBT) was £3.1m, up 48% year-over-year; operating expenses increased to £10.2m reflecting scale-up.

• Operating cash flow was £35.3m, including £22m advance payment; closing cash balance at £41.6m, with £27.4m restricted for project bonds.

• Net assets stood at £29.9m at 31 December 2025; borrowings at £16.2m; net current assets: £22.3m.

• Basic EPS rose to 1.16p from 0.93p year-over-year; diluted EPS was 1.10p versus 0.85p.

Outlook and guidance

• Contract order book at £227m, with further signed contracts pending activation and a validated pipeline of £1.8bn.

• Broker forecasts project continued revenue and PBT CAGR of 26% and 46% respectively from FY2025 to FY2027, based on existing contracts.

• Revenue growth expected to continue in the second half, with the Board confident in meeting market expectations.

• Long-term growth visibility supported by robust market trends and accelerating contract conversions.

• Cash generation expected to remain strong for the full year, despite planned project-related purchases.